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VLCT Property and Casualty Intermunicipal Fund, Inc.
Board of Directors Meeting
Friday, September 28, 2018
VLCT Offices, Montpelier, Vermont

Minutes

Directors Present: Pete Johnson, Joshua Powers, John Lawe, Carl Rogers, Brendan Whittaker, Neal Fox, Jackie Higgins (left 10:45 am), Aaron Frank, Bruce Urie, Jerry Storey, David Atherton

Staff Present: Joe Damiata, David Sichel, Maura Carroll, Jeremiah Breer, Fred Satink, Pam Fecteau (10:40 am)

Others Present: Chris Kogut, Tara Miller (Milliman) (10:00 am)

President Johnson called the meeting to order at 9:30 am.

Upon motion (Powers/Storey) duly adopted, the Board voted unanimously to approve the agenda as presented.

Upon motion (Fox/Powers) duly adopted, the Board voted to approve the minutes from the June 22 and July 12, 2018 meetings as presented. 

Joe Damiata presented a staff update:

  • The Phillips/Brandon claim was settled for $9.1 million.
  • Fred Satink and Joe Damiata attended the JLT Client Forum and were able to meet with underwriters. This helped with the reinsurance renewal.
  • Town Fair is next week. The annual meeting will begin at 12:30 pm on Wednesday. The meeting will be joint with VERB and VLCT.
  • Claims staff is settling old claims.
  • Staff members attended a conference put on by our claims and underwriting software provider David Corp.

The board considered resolutions to appoint Joe Damiata as the Vermont board member for NLC Mutual insurance Company. The VLCT Board makes the appointment with input from the PACIF Board. The Board also discussed a resolution appointing Joe Damiata as the PACIF representative to AGRiP.

Upon motion (Frank/Higgins) duly adopted, the Board voted to recommend that the VLCT Board appoint Joe Damiata as the NLC Mutual Insurance Company board member from Vermont, effective January 1, 2019. The Board also appointed Joe Damiata as the VLCT PACIF representative for AGRiP.

The Board discussed the Alternate Board Member vacancy created by the resignation of Sarah Macy from the board. The board considered three nominations.

Upon motion (Whittaker/Higgins) duly adopted, the Board voted to appoint Patrick Moreland, Brattleboro Assistant Town Manager, to the vacant Alternate Board Member position.

Pete Johnson confirmed the appointment of Pete Johnson, Neal Fox, Stuart Hurd and John Lawe to the Nominating Committee. The committee will meet after the board meeting.

Joe Damiata reviewed the preliminary budget for 2019. The actuary used this preliminary budget figure for their study.

Chris Kogut from Milliman presented the mid-year Actuarial Reserve Analysis and 2019 Funding Study to the Board.

The Board discussed proposed rates for 2019. Fred Satink explained that staff proposes an overall rate decrease of 2.8%. More detailed rates, by line of coverage, were discussed.

Fred Satink updated the board on the reinsurance renewals. Overall reinsurance costs are up.  The aggregate deductible for the $4.5 million x 500 thousand layer provided by Markel and NLC MIC will increase from $250 thousand to $500 thousand. This will reduce reinsurance premiums. The $5 million x $5 million liability layer will be moved from Genesis to Chubb due to large price increases.

Workers’ compensation reinsurer Safety National increased their attachment point from $750 thousand to $1 million at a flat rate. NLC MIC will pick up the $500 thousand x $500 thousand layer. The result is higher workers’ compensation reinsurance costs.

Pam Fecteau reviewed proposed changes to the Coverage Document for 2019. PACIF's corporate counsel John Riley has reviewed the proposed changes.

Fred Satink reviewed proposed changes to the Underwriting Policy.

Joe Damiata reviewed the proposed distribution credit to members for 2019. Staff is recommending a distribution credit of $1,700,000 with $1,500,000 as rate credits and $200,000 to fund the equipment grant program.  

Joe Damiata presented a request to use up to $1 million in Net Position to allow more underwriting flexibility if needed. The Board supports this request.

Pete Johnson appointed John Lawe to the Audit Committee assisting with the auditor RFP. He will fill the vacancy resulting from Sarah Macy leaving the board.

Upon motion (Powers/Storey) duly adopted, the Board adjourned at 12:24 pm.

Respectfully submitted,
David Sichel, Assistant Secretary

Board Meeting Date: 
Friday, September 28, 2018

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